Administrative Policy
21 April 2015 Memorandum 2014-0560811I7 - FACL carryback Surplus & PAS election
A Reg. 5901(2)(b) election, to have a dividend treated as paid out of pre-acquisition surplus, must be made by the filing-due date for the taxation year in question, even where CRA subsequently assesses the year in question so as to change the relevant surplus balances.
See summary under Reg. 5901(2)(b).
14 May 2015 CLHIA Roundtable Q. , 2015-0573861C6
Can an insurer elect under Reg. 2411(3)(a) subsequently to filing its income tax return? CRA responded:
There is no specific provision for the acceptance of a late filed election under paragraph 2411(3)(a)… .
The court cases and the Rulings opinions…[respecting] late filed designations under paragraph 55(5)(f) or subsection 104(13.1)… can be distinguished from an election under the Act. … Administratively, there is no requirement that the CRA extend the taxpayer relief provisions to elections other than those listed in section 600 of the Regulations.